A Panama City Beach, Florida hotel staffing firm paid $503,053 in back wages and liquidated damages to 227 workers after misclassifying them as independent contractors, the US Department of Labor announced Tuesday.

An investigation by the department’s Wage and Hour Division found the company, Touch of Grace Services LLC, paid workers straight time for all hours worked and failed to pay overtime. The company also failed to keep accurate records of the hours worked and correct wages paid to some employees.

Touch of Grace Services provides workers to Panama City Beach hotels.

“Federal labor law includes strict criteria for classifying workers as independent contractors. Misclassified workers are illegally denied their full pay, benefits, and legal protections,” Wage and Hour Division District Director Wildalí De Jesús said. “We encourage employers to use the resources the Wage and Hour Division offers to understand proper pay practices and avoid the costly consequences of violations.”